[Federal Register Volume 66, Number 154 (Thursday, August 9, 2001)]
[Rules and Regulations]
[Pages 41805-41806]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-19996]
-----------------------------------------------------------------------
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 1845 and 1852
Property Reporting Requirements
AGENCY: National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This final rule amends the NASA FAR Supplement (NFS) to comply
with existing Federal accounting standards and OMB rules on Form and
Content of agency financial statements and makes other changes to
NASA's property reporting requirements.
EFFECTIVE DATE: August 9, 2001.
FOR FURTHER INFORMATION CONTACT: Lou Becker, NASA Headquarters, Code
HK, Washington, DC 20546, telephone: (202) 358-4593, email:
[email protected].
SUPPLEMENTARY INFORMATION:
A. Background
NASA is adopting as final with changes the interim rule published
in the September 11, 2000, Federal Register (65 FR 54813-54816) and as
corrected in the September 28, 2000, Federal Register (64 FR 58231).
The OMB Bulletin on Form and Content of Agency Financial Statements
prescribes financial accounting and reporting requirements for Federal
agencies. Included are accounting standards which apply to property,
plant and equipment. Specific changes included in the interim rule
were: Additional instructions on how to adjust previously reported
values; a new definition of Agency Peculiar Property to exclude
completed end items destined for permanent operation in space; and a
new definition of Work in Process to include completed end items
destined for permanent operation in space which otherwise meet the
definition of Agency Peculiar Property. Comments were received from
four groups. All comments received were considered. Changes made in
this final rule are for consistency in application and are considered
editorial in nature.
B. Regulatory Flexibility Act
NASA certifies that this final rule will not have a significant
economic impact on a substantial number of small entities within the
meaning of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.)
because less than three per cent of NASA contracts with small
businesses have property reporting requirements.
C. Paperwork Reduction Act
The Paperwork Reduction Act, 44 U.S.C. 3501 et seq., applies to
this final rule because it contains information collection
requirements. Approval for the additional requirements has been
obtained under OMB Control No. 2700-0017, approving an increase in
burden hours from 5,700 to 8144.
List of Subjects in 48 CFR Parts 1845 and 1852
Government Procurement.
Tom Luedtke,
Associate Administrator for Procurement.
Accordingly, 48 CFR Parts 1845 and 1852 are amended as follows:
1. The authority citation for 48 CFR Parts 1845 and 1852 continues
to read as follows:
Authority: 42 U.S.C. 2473(c)(1).
PART 1845--GOVERNMENT PROPERTY
2. Revise Sec. 1845.7101 to read as follows:
1845.7101 Instructions for preparing NASA Form 1018.
NASA must account for and report assets in accordance with 31
U.S.C. 3512 and 31 U.S.C. 3515, Federal Accounting Standards, and
Office of Management and Budget (OMB) instructions. Since contractors
maintain NASA's official records for its assets in their possession,
NASA must obtain annual data from those records to meet these
requirements. Changes in Federal Accounting Standards and OMB reporting
requirements may occur from year to year, requiring contractor
submission of supplemental information with the NASA Form (NF) 1018.
Contractors shall retain documentation that supports data reported on
NF 1018 in accordance with FAR subpart 4.7, Contractor Records
Retention. Classifications of property, related costs to be reported,
and other reporting requirements are discussed in this subpart. NASA
Form 1018 (see 1853.3) provides critical information for NASA financial
statements and property management. Accuracy and timeliness of the
report are very important. If errors are discovered on NF 1018 after
submission, the contractor shall contact the cognizant NASA Center
Industrial Property Officer (IPO) to discuss corrective action. IPO's
shall work with NASA Center finance personnel to determine appropriate
corrective action and provide guidance to contractors.
3. In section 1845.7101-1, revise paragraphs (c), (d), (g)(2),
(h)(2), (i)(2), the introductory text of paragraph (k), and (k)(2) to
read as follows:
1845.7101-1 Property Classification.
* * * * *
(c) Buildings. Includes costs of buildings, improvements to
buildings, and fixed equipment required for the operation of a building
which is permanently attached to and a part of the building and cannot
be removed without cutting into the walls, ceilings, of floors.
Contractors shall report buildings with a unit acquisition cost of
$100,000 or more. Examples of fixed equipment required for functioning
of a building include plumbing, heating and lighting equipment,
elevators, central air conditioning systems, and built-in safes and
vaults.
(d) Other Structures and Facilities. Includes costs of acquisitions
and improvements of real property (i.e. structures and facilities other
than buildings); for example, airfield pavements, harbor and port
facilities, power production facilities and distribution systems,
reclamation and irrigation facilities, flood control and navigation
aids, utility systems (heating, sewage, water and electrical) when they
serve several buildings or structures, communication systems, traffic
aids, roads and bridges, railroads, monuments and memorials, and
nonstructural improvements such as sidewalks, parking areas, and
fences. Contractors shall report other structures
[[Page 41806]]
and facilities with a unit acquisition cost of $100,000 or more and a
useful life of two years or more.
* * * * *
(g) * * *
(2) All other items.
(h) * * *
(2) All other items.
(i) * * *
(2) All other items.
* * * * *
(k) Agency-Peculiar Property. Includes costs of completed items,
systems and subsystems, spare parts and components unique to NASA
aeronautical and space programs. Examples include research aircraft,
reusable space vehicles, ground support equipment, prototypes, and
mock-ups. The amount of property, title to which vests in NASA as a
result of progress payments to fixed price subcontractors, shall be
included to reflect the pro rata cost of undelivered agency-peculiar
property. Completed end items which otherwise meet the definition of
Agency-Peculiar Property, but are destined for permanent operation in
space, such as satellites and space probes, shall be reported as
Contract Work in Process. Contractors shall separately report:
* * * * *
(2) All other items.
* * * * *
4. In section 1845.7101-2, amend the first sentence of the
introductory paragraph by capitalizing the word ``Centers'' the first
time it appears and add the following sentence at the end of paragraph
(c) to read as follows:
1845.7101-2 Transfers of property.
* * * * *
(c) * * * The contracting officer shall assist the Government
Property Administrator and the receiving contractor to obtain all
required information for the receiving contractor to establish adequate
property records.
5. In section 1845.7101-3, delete paragraph (a)(12); amend the
second sentence of paragraph (a) and paragraph (e) to read as follows:
1845.7101-3 Unit acquisition cost.
(a) * * * The following is representative of the types of costs
that shall be included, when applicable: * * *
* * * * *
(e) Only modifications that improve an item's capacity or extend
its useful life two years or more and that cost $100,000 or more shall
be reported on the NF 1018 on the $100,000 & Over line. The costs of
any other modifications, excluding routine maintenance, will be
reported on the Under $100,000 line. If an item's original unit
acquisition cost is less than $100,000, but a single subsequent
modification costs $100,000 or more, that modification only will be
reported as an item $100,000 or more on subsequent NF 1018s. The
original acquisition cost of the item will continue to be included in
the under $100,000 total. The quantity for the modified item will
remain ``1'' and be reported with the original acquisition cost of the
item. If an item's acquisition cost is reduced by removal of components
so that its remaining acquisition cost is under $100,000, it shall be
reported as under $100,000.
* * * * *
6. In section 1845.7101-4, revise paragraphs (b) and (h) to read as
follows:
1845.7101-4 Types of deletions from contractor property records.
* * * * *
(b) Transferred in Place. Deletion amounts that result from
transfer of property to a follow-on prime contract or other prime
contract with the same contractor.
* * * * *
(h) Other. Types of deletion other than those reported in paragraph
(a) through (g) of this section such as those resulting from
reclassifications (e.g. from equipment to agency-peculiar property).
1845.701 [Amended]
7. Amend section 1845.7101-5, by removing the last sentence.
PART 1852--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
8. Amend the clause at section 1852.245-73 by revising the date of
the clause, paragraphs (b)(2), (b)(3), and the fifth sentence of
paragraph (c) to read as follows:
1852.245-73 Financial Reporting of NASA Property in the Custody of
Contractors.
* * * * *
Financial Reporting of NASA Property in the Custody of Contractors
(August 2001)
* * * * *
(b)(1) * * *
(2) The Contractor shall mail the original signed NF 1018 directly
to the cognizant NASA Center Deputy Chief Financial Officer, Finance,
unless the Contractor uses the NF 1018 Electronic Submission System
(NESS) for report preparation and submission.
(3) One copy shall be submitted (through the Department of Defense
(DOD) Property Administrator if contract administration has been
delegated to DOD) to the following address: [Insert name and address of
appropriate NASA Center office.], unless the Contractor uses the NF
1018 Electronic Submission System (NESS) for report preparation and
submission.
(c) * * * The Contracting Officer may, in NASA's interest, withhold
payment until a reserve not exceeding $25,000 or 5 percent of the
amount of the contract, whichever is less, has been set aside, if the
Contractor fails to submit annual NF 1018 reports in accordance with
1845.505-14 and any supplemental instructions for the current reporting
period issued by NASA. * * *
* * * * *
[FR Doc. 01-19996 Filed 8-8-01; 8:45 am]
BILLING CODE 7510-01-P